With continued turmoil in global markets around the world, today one of the savviest and most well-connected hedge fund managers in the world spoke with King World News about the coming LBMA collapse, Andrew Maguire, gold, and what will be “the greatest short squeeze in modern financial history.”
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One of the options that was looked at very closely by the Reserve Bank of India was actually similar to what goes on at the Comex. In other words, luring Indians into buying paper gold, and as a result, (it would) deflect interest that would otherwise be routed to physical gold. If the contracts were created on an Indian exchange, that would be all the better because in theory it would help solve the current account deficit problem.
What’s interesting is there is a Chapter V in this Reserve Bank of India report titled, ‘Dematerialization Of Gold.’ And as you get to the chart under gold-backed instruments in global trends, what you wind up with is a chart that was excerpted right out of CPM’s book from 2011. What the chart shows is the paper claims on gold being approximately 93 to 1 vs physical gold that is available in the same year. This is an astonishing admission.
h/t Tom R
